Reliance Infrastructure Ltd.

Transcription

1 Reliance Infrastructure Ltd. Investor Presentation July, 2010

2 Forward looking statements Important Note This presentation and the discussion that follows may contain forward looking statements by Reliance Infrastructure that are not historical in nature. These forward looking statements, which may include statements relating to future results of operation, financial condition, business prospects, plans and objectives, are based on the current beliefs, assumptions, expectations, estimates, and projections of the directors and management of Reliance Infrastructure about the business, industry and markets in which Reliance Infrastructure operates. These statements are not guarantees of future performance, and are subject to known and unknown risks, uncertainties, and other factors, some of which are beyond Reliance Infrastructure control and difficult to predict, that could cause actual results, performance or achievements to differ materially from those in the forward looking statements. Such statements are not, and should not be construed, as a representation as to future performance or achievements of Reliance Infrastructure. In particular, such statements should not be regarded as a projection of future performance of Reliance Infrastructure. It should be noted that the actual performance or achievements of Reliance Infrastructure may vary significantly from such statements. 2

3 Business Overview Power Business EPC Business Infrastructure Transmission Distribution Generation Power Sector Non Power Sector Roads Metro Rail Airports Cement Trading Specialty Real Estate 3

4 The Structure Reliance Infrastructure Reliance Power (45%) EPC 100% Power Generation Power Transmission Power Distribution Roads Metro Rail Cement Trading Airports Specialty Real Estate Business segmentation for focused leadership 4

5 Pan India Diversified Presence Roads Metros Generation Cement Transmission Distribution Airports 5 Specialty Real Estate 37 Projects I 16 States I 8 Sectors

6 Power Business

7 Power Generation Parameter Capacity Type Off-take Arrangements Dahanu Power Station 500 MW Thermal Mumbai Discom Samalkot Power Station* 220 MW Combined Cycle Andhra Pradesh Grid Goa Power Station* 48 MW Combined Cycle Goa Grid Kerela Power Station* 165 MW Naptha Kerela State Electricity Board Wind Farm, Karnataka 8 MW * Proposed to transfer to R Power Necessary approval awaited Wind Karnataka Power Transmission Corp. Ltd Dahanu Station running at PLF of ~100% from last 6 yrs Samalkot Station achieved PLF of 93% in FY10 Outperformance of norms leading to high ROEs Operate one-of-the-most efficient thermal plants of India 7

8 Future Power Generation through Reliance Power.. R Infra owns 45% of R Power Reliance ADA Group s GENCO, to develop all future power generation assets in India and overseas Develop, construct and operate ~35,000 MW of generating capacity Diversified portfolio of 19 projects consisting of Coal, Gas & Hydroelectric power based projects across India Aggregate Investment in R Power of Rs 17.2 Bn Current Market Value of Rs 194 Bn* - Appreciation of over 11 times Embedded Value of ~ Rs 790 per share * R Power Market Rs 180- Largest private power generation portfolio in India 8

9 Reliance Power Project portfolio Project phase Capacity Operating phase 1,033 MW Dadri Gas Urthing Sobla (400 MW) Projects in Arunachal Pradesh (4220 MW) Construction phase Development phase 9,160 MW 24,120 MW Rosa (1200 MW) Chitrangi (5,940 MW) Tilaiya (3960 MW) Sasan (3,960 MW) Total 34,313 MW Diversification of projects Shahapur Gas Butibori (600 MW) Region-wise break up Fuel-wise break up Shahapur Coal (1200 MW) Goa IPP (48 MW) Samalkot (220 MW) Krishnapatnam (4000 MW) Kochi IPP (165 MW) Operating projects Projects under construction Projects under development 9

10 Power Transmission Project Name Project Type Project Cost (Rs Bn) Shareholding Update Power Transmission Agreement signed with 8 western regional utilities Western Region Strengthening Scheme (WRSS) Competitive Bidding % Foundation work for ~50% towers completed Erection of 375 towers completed Around 700 people working on site, including more than 50 personnel's from R Infra Line would go on-stream from Q2 FY11 Acquired sanctions for debt from PFC & REC Parbati Koldam Transmission Regulated % Indemnification agreement signed with NHPC Signed bulk transmission agreement with all 13 beneficiaries Revenue to commence from Q1FY13 Mumbai Strengthening Regulated % Acquired all technical and commercial clearances Expected to be fully operational by FY12 Total 42.5 R Infra is the largest private player in transmission sector 10

11 Ultra Mega Transmission Projects Won 2 out of 3 UMTP s Project Name Project Type Project Cost (Rs Bn) Shareholding Update North Karanpura Competitive Bidding % Project taken over from REC & SPV transferred Talcher - II Competitive Bidding % Project taken over from REC & SPV transferred Total 23.7 Total transmission projects of over Rs 66 Bn 11

12 Opportunities Ahead Projects Mumbai Transmission Under Bidding Stage Standalone Central Projects Standalone State Projects Captive Projects Total Project Cost (Rs Bn) Opportunity of over Rs 550 Bn over next 2-3 years 12

13 Power Distribution Mumbai Serves 2 out 3 homes in Mumbai & Delhi Serve over 5.2 million customers Distributes over 5,000 MW of power Largest private sector distributor of power 13

14 Mumbai Distribution Distributing power to over 2.7 million customers 1,520 MW of peak demand Among the lowest AT&C loss levels in the Country AT&C losses of <11% Reliability of 99.95% Continuous upgradation and modernization undertaken Yearly investment of ~Rs 5 bn Only utility without need for Invertors, Stabilizers and Generators Technology driven organization Awarded Excellence in Power Distribution by IEEMA 14

15 Delhi Distribution BSES Rajdhani Power Limited Privatized in 2002 R Infra own 49% in both discoms Distributing power to over 2.6 million customers 2,630 MW of peak demand AT&C Losses (%) AT&C loss reduction of ~35% FY07 FY08 FY09 FY10 In BRPL from 51% to 19% In BYPL from 63% to 23% Yearly investment of Rs 4-5 Bn Earned Incentive of Rs 1.4 Bn in FY10 AT&C Losses (%) Target Achieved BSES Yamuna Power Limited FY07 FY08 FY09 FY10 Target Achieved Delhi success would lead to more private participation initiatives. 15

16 IT Initiative under R-APDRP* programme Empanelled under R-APDRP* Scheme as IT Consultant IT Implementation Agency SCADA/DMS consultants Providing IT consultancy to Karnataka State Electricity Board for 5 distribution circles Bidding for IT implementation in following states: 1. Tamil Nadu 2. Haryana 3. Bihar 4. Kerala * Restructured Accelerated Power Development and Reform Programme Opportunity of Rs 40 Bn 16

17 Opportunities Ahead - Distribution Distribution Franchisee is recognized as a way forward in power distribution business Several states have initiated process under Franchisee model States Uttar Pradesh Maharashtra Haryana Uttaranchal Madhya Pradesh Total No. of Circles Project Size (Rs Bn) Pursuing profitable opportunities in the space 17

18 Reliance Energy Trading Ltd 3,500 3,000 2,500 2,000 1,500 Number of units traded (in MU s) 1,022 1,934 CAGR of 156% 3,200 Traded 3,200 MU s in FY10 Tied up with merchant and captive power plants for assured trading of 60,000 MU s during 25 years Integration with generation capacity of R Power & captive distribution businesses 1, FY08 FY09 FY10 Achieved volume growth of over 150% in 2 years Among the top 3 private players in trading market 18

19 EPC Business

20 EPC Business Revenue (Rs Bn) Order Book of Rs 192 Bn Revenue (Rs Bn) EBIT Margin (%) EB IT m arg in (% ) R Power & Internal Power projects 3,960 MW Sasan UMPP 600 MW Butibori TPP* Western Region Strengthening project, Maharashtra and Gujarat External Power projects 1,200 MW Raghunathpur TPP* 1,200 MW Rajiv Gandhi TPP* at Hisar 500 MW Parichha TPP* BOP package Road projects Gurgaon Faridabad Toll Road Jaipur Reengus Toll Road Projects under construction Power projects : 7,500 MW Road projects : 120 Kms FY07 FY08 FY09 FY10 Dedicated manpower strength of over 1,600 * Thermal Power Project 20

21 EPC Business - Highlights EPC Projects Hisar Power Plant Butibori Power Plant Sasan UMPP Raghunathpur Power Plant Gurgaon Faridabad Road WRSS Transmission Line Status Syncronized Unit 1 in December 09 a record of 33 months First ever 600 MW unit executed in the country Shell Concrete of Chimney upto 142 meters height is completed Boiler Foundation work nearing completion Concreting work of Chimney Shell started 90% of RCC work in Pedestial & Tie beam completed Construction work in full swing Erection of tower work in full swing 21

22 EPC Business Major Initiatives Signed MOU with Black & Veatch, USA Mentoring support to projects based on Super Critical Technology Remote surveillance of project sites Established Centre of Excellence to enhance technical capabilities Developing competencies in Roads, Metro/Mono Rail, Cement, Airports and Nuclear plants Recent foray in Road Sector 22

23 Infrastructure Business

24 Roads Current Projects S.No Project Project Cost (Rs Bn) Funding (Debt : Grant : Equity) Length (Km) Concession Period* (years) Status 1 Namakkal Karur (NK Toll Road) :07: Operational since Q2 FY10 2 Dindigul Samyanallore (DS Toll Road) :07: Trichy Karur (TK Toll Road) :20: COD by Q1 FY12 4 Trichy Dindigul (TD Toll Road) :20: COD by Q3 FY11 5 Salem Ulenderpet (SU Toll Road) :20: Gurgaon Faridabad (GF Toll Road) :00: COD by Q1 FY12 * Includes construction period Continued... 24

25 Roads Current Projects S.No Project Project Cost (Rs Bn) Length (Km) Concession Period* (years) Status 7 Jaipur Reengus Corridor (JR Toll Road) Financial closure to be announced shortly; COD by Q4 FY Pune Satara Road # (PS Toll Road) Kandla Mundra Road (KM Toll Road) Concession agreement signed in March Hosur to Krishnagiri # (HK Toll Road) Concession agreement signed in July Delhi Agra Road # (DA Toll Road) SPV transferred Total * Includes construction period # Six laning projects Largest developer of six laning road projects 11 Projects I 970 kms I Rs 120 Bn 25

26 Western Freeway Sea Link Project Operation and Maintenance of Bandra to Worli Sea Link and development of Worli to Haji Ali Sea link R Infra have tolling right of entire 11.5 kms stretch Bandra Concession period of 40 years Estimated project cost of Rs 51 Bn Upfront payment of Rs Bn to MSRDC Worli Viability gap funding of Rs Bn Haji Ali Concession Agreement signed in July 10 Haji Ali R Infra owns the first Sea Link of the country 26

27 Opportunities being pursued Stage Number of Projects Length (Km) Project Cost (Rs Bn) RFP Stage RFQ submitted 57 6, RFQ to be submitted 14 1, Total 76 8, Expected to have road portfolio of over Rs 250 Bn by FY12 27

28 Metro Rail Current Projects Project Project Cost (Rs Bn) Debt : Grant : Equity Length (Km) COD Concession Period* Shareholding Delhi Airport Express Link Project :0:1 23 Q2 FY11 30 Years a) R Infra: 95% b) CAF (Spain): 5% Mumbai a) R Infra: 69% Metro Line I :27:22 11 Q4 FY11 35 Years b) MMRDA: 26% c) Veolia (France): 5% Mumbai Metro Line II Within 5 years from financial closure 35 Years^ a) R Infra: 48% b) R Com: 26% c) SNC Lavalin (Canada): 26% Total * Including construction period ^ Could be extended for further 10 yrs Only private player in Metro Rail 28

29 Delhi Airport Metro Express Link Project Metro express link connecting New Delhi Railway Station to Dwarka through IGI Airport Nature of work Major contractors Business Partners Traffic forecast: ~15,000 daily in initial year Project Management Consultants Mass Transit Railway Corporation (MTR), Hong Kong Fare Structure* Civil Contractor Delhi Metro Rail Corporation (DMRC) Categories Fares Rolling stock Supplier CAF, Spain Between New Delhi Station & IGI Airport Rs 150 Traffic Consultant MVA Asia, Systra MVA Consulting Between Dwarka Sector 21 & IGI Airport * Fares to be increased every 2 WPI Rs 30 Signaling & Traction Siemens Real Estate area of 1,32,000 sqmtrs Track work Real Estate Potential Study VNC Rail One Cushman & Wakefield Fastest, comfortable and economical commute to the airport 29

30 Delhi Airport Metro Express Link Status Update First train already arrived at site Civil work is almost completed Track work in tunnels and viaducts in advance stages of completion Equipment fittings of Power Supply, Tunnel ventilation, Signaling and Platform Screen Doors is under installation phase Test run of rolling stock is underway Over 100 professionals from MTR (Hongkong) working along with in-house dedicated team. Dwarka Sector 21 Dwarka Sector 21 New Delhi New Station Delhi Shivaji Shivaji Stadium Dhaula Kuan IG Airport IGI Airport NH-8 NH 8 Expected completion in Q2FY11- Before Commonwealth Games 30

31 Mumbai Metro Line I Project Elevated metro rail connecting Versova Andheri Ghatkopar 12 stations along the corridor Traffic forecast: 0.6 Mn per day; would reach upto 1.1 Mn Nature of work Project Management Consultants Viaduct Station Work Major contractors Business Partners Consortium of Parsons-Brinckerhoff (USA) & Systra (France) Simplex Infrastructure Sew Construction Categories Traffic < 3 km 8 km <Traffic>3 km Traffic > 8 km Fares at Base Year (2004)* Rs 6 Rs 8 Rs 10 * Fares to be every 4 th year Fare Structure Real Estate of 1,000 sqmtrs at each station Special Bridges Rolling stock Supplier Traffic Study Signaling Communication Traction & Power Supply Track work Sew Infrastructure CSR Nanjing Puzhen, China Consulting Engineering Services (CES) Siemens Thales ABB VNC Rail One Project of the Year 2 nd KPMG Infrastructure Today Awards 31

32 Mumbai Metro Line I Status Update First train already arrived at site Foundation work for Stations, Viaduct & Depot almost completed and super structure work are in progress Track laying in depot is in progress Foundation works for the Western Express Highway Special Bridge and the Mithi River Special Bridge completed Construction work at bridge over western railway track at Andheri is in full swing Obtained viability gap funding of ~ Rs 2 Bn from MMRDA Expected completion in FY11 18 months ahead of contractual date 32

33 Mumbai Metro Line II Project 32 km elevated track along the Mankhurd - Bandra- Charkop corridor having 27 stations Charkop Concession period of 35 yrs (from financial closure) Design consultants for track work & civil work has been appointed Topographic survey of the corridor has been almost completed & Geo-technical investigation is in progress Estimated project cost of Rs 110 Bn Viability Gap Funding of Rs 23 Bn Traffic forecast: 1.4 mn daily in initial year Real Estate development at 1.2 Mn sqft Concession Agreement signed in January 10 Bandra Mankhurd Expected to commissioned by FY15 33

34 Metro Rail Projects in Pipeline Hyderabad Metro Project cost of Rs 121 Bn 72 km elevated track with 66 stations and 3 depots Real Estate development of 18.5 Mn sqft Concession period of 35 years extendable by 25 years Bangalore High Speed Rail Link Project cost of Rs 58 Bn Will connect the City Centre to the International Airport 33 km elevated track (section within the Airport to be underground) with 4 stations Concession period of 30 years Real Estate development at stations and depot Immense Opportunity to emerge. Benefits of single and experienced player would play key role 34

35 Airports Acquired developing & operating rights for 5 regional brown-field airports in Maharashtra Lease deed executed for 95 years Developing airstrip for captive use at Sasan UMPP All statutory approvals in place Detailed engineering studies underway Engaged internationally renowned consultants Louis Berger Group for Master Planning Knight Frank for Demand Assessment 35

36 Project Details Airports Runway Length (mtrs) Land Area (hectares) Current Operations Opportunities on the anvil Nanded 2, flights / week Aviation flight school Cargo and Logistics Hub Air Connectivity Pune, Hyderabad & Amritsar, pilgrims visiting Sachkhand Gurudwara Latur 2, flights / week Warehousing & Food Storage hub Air Logistics hub Aviation Engg Inst. & Aviation Themed film studio Yavatmal 2, Business Jets Air Connectivity - Mumbai, Nagpur & Delhi Emerging Power and Cement Mfg hub Aircraft Recycling Zone Baramati 2, Business Jets Aircraft Parking Plaza MRO Hub Osmanabad 1, Business Jets Textile and Leather SEZs of Govt. of Italy Aviation & Aeronautical Engineering Institute Total

37 Cement Business Targeted capacity of 25 mn tons in next 5 years Identified 2 sites i.e Satna in Madhya Pradesh (MP) & Yavatmal in Maharashtra of 5 Mn tons each Signed MOU with MP, Maharashtra & Gujarat Government Secured limestone reserves and acquired main plant land for both MP & Maharashtra projects Satna (MP) plant has achieved financial closure IDBI Bank is the lead arranger Aims to become 4 th largest player in the country 37

38 Specialty Real Estate CBD & Trade Tower SEZ Developing a 100 storeyed Trade Tower & Business District in Hyderabad on 80 acres of land Setting-up IT/ITES SEZ at DAKC, Navi Mumbai Unlimited FSI & no restriction on mix use Over 45 acres area - Initial saleable area of 4 Mn sqft Clear titled land : APIIC in possession of the entire land BOA approved and notification process underway R Infra have 89% stake; 11% by APIIC Complete land is in possession Strategic location 6 kms from new international airport 38

39 Financial Strengths

40 Financials Performance Standalone Consolidated Amount In Rs Bn Particulars FY 09 FY 10 Particulars FY 09 FY 10 Total Operating Income Total Operating Income EBITDA EBITDA Interest Interest PAT PAT Cash Profit Cash Profit EPS EPS

41 Sound Financial Status Cash and cash equivalent of Rs 88.5 Bn Debt of Rs 41 Bn Debt free at net level Equity infusion of Rs 18.2 Bn by promoters, due to conversion of 19.6 Mn warrants into equity out of total allotment of 42.9 Mn warrants Balance Sheet Strength Particulars Networth Standalone Rs 152 Bn Consolidated Rs 207 Bn Book Value per share Rs 619 Rs 846 As on March 31, 10 41

42 Shareholding Pattern Category Promoters Insurance Co FII Mutual Funds/ Banks & FI Bodies Corporate Public Total As on June 30, 10 No. of Shares (In Mn) % Holding R Infra has 1.5 Mn shareholders 42

43 To sum up

44 Partnership with Global leading players 44

45 Moving Ahead. Generation - Developing pipeline of ~35,000 MW in Reliance Power No further capital infusion required from R Infra Transmission - Developing 5 projects with total outlay of Rs 66 Bn Distribution - Existing distribution businesses to grow at ~6% pa Power Trading - Among top 3 private players and business growing steadily EPC Business - Healthy EPC order book of over Rs 190 Bn Largest infrastructure company in the country 45

46 Moving Ahead. Infrastructure - Expanding footprint in all high growth sectors Roads : 11 projects Metros: : 3 projects Sea Link: : 1 project Cement Plans to set up 25 Mn tons cement capacity over next 5 years Airports Acquired developing and operating rights for 5 brownfield regional airports in Maharashtra Healthy Balance Sheet to capitalize on growth opportunities Growth at explosive pace 46

47 Thank You